Manufacturing Revolutions: Industrial Policy and Industrialization in South Korea

Lane, Nathan (2016): Manufacturing Revolutions: Industrial Policy and Industrialization in South Korea.

Abstract

I study the impact of industrial policy on industrial development by consid- ering an important episode during the East Asian miracle: South Korea’s heavy and chemical industry (HCI) drive, 1973–1979. Based on newly assembled data, I use the introduction and termination of industrial policies to study their impacts during and after the intervention period. (1) I reveal that the heavy-chemical industrial policies promoted the expansion and dynamic comparative advantage of directly targeted industries. (2) Using variation in exposure to policies through the input-output network, I demonstrate that policy indirectly benefited down- stream users of targeted intermediates. (3) The benefits of HCI persisted even after it ended, some of which took time to manifest. These findings suggest that the temporary drive shifted Korean manufacturing into more advanced markets and supported durable change. This study helps clarify the lessons drawn from the East Asian growth miracle

• Item Type: MPRA Paper
• Language: English
• Keywords: ndustrial policy, East Asian miracle, economic history, industrial development, Heavy-Chemical Industry Drive, Heavy and Chemical Industry Drive
• Subjects: L - Industrial Organization > L5 - Regulation and Industrial Policy; L - Industrial Organization > L5 - Regulation and Industrial Policy > L52 - Industrial Policy ; Sectoral Planning Methods; L - Industrial Organization > L6 - Industry Studies: Manufacturing; N - Economic History > N6 - Manufacturing and Construction; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O14 - Industrialization ; Manufacturing and Service Industries ; Choice of Technology; O - Economic Development, Innovation, Technological Change, and Growth > O2 - Development Planning and Policy > O25 - Industrial Policy

References

Acemoglu, D., Autor, D., Dorn, D., Hanson, G. H., & Price, B. (2016). Import competition and the great U.S. employment sag of the 2000s. Journal of Labor Economics, 34(S1), S141–S198. https://doi.org/10.1086/682384

Ackerberg, D. A., Caves, K., & Frazer, G. (2015). Identification properties of recent production function estimators. Econometrica, 83(6), 2411–2451. https://doi.org/10.3982/ECTA13408

Aghion, P., Cai, J., Dewatripont, M., Du, L., Harrison, A., & Legros, P. (2015). Industrial policy and competition. American Economic Journal: Macroeconomics, 7(4), 1–32. https://doi.org/10.1257/mac.20120103

Amiti, M., & Konings, J. (2007). Trade liberalization, intermediate inputs, and productivity: Evidence from Indonesia. American Economic Review, 97(5), 1611–1638. https://doi.org/10.1257/aer.97.5.1611

Amsden, A. H. (1992). Asia’s next giant: South Korea and late industrialization (2nd ed.). New York, NY: Oxford University Press. https://doi.org/10.1093/0195076036.001.0001

Balassa, B. (1965). Trade liberalisation and “revealed” comparative advantage. The Manchester School, 33(2), 99–123. https://doi.org/10.1111/j.1467-9957.1965.tb00050.x

Baldwin, R., & Krugman, P. (1988). Market access and international competition: A simulation study of 16K random access memories. In R. Feenstra (Ed.), Empirical methods for international trade (pp. 171–197). Cambridge, MA: MIT Press. https://doi.org/10.3386/w1936

Baldwin, R. E. (1969). The case against infant-industry tariff protection. Journal of Political Economy, 77(3), 295–305. https://doi.org/10.1086/259517

Banerjee, A. V., & Duflo, E. (2014). Do firms want to borrow more? Testing credit constraints using a directed lending program. Review of Economic Studies, 81(2), 572–607. https://doi.org/10.1093/restud/rdt046

Bardhan, P. K. (1971). On optimum subsidy to a learning industry: An aspect of the theory of infant-industry protection. International Economic Review, 12(1), 54–70. https://doi.org/10.2307/2525522

Barrios, S., & Strobl, E. (2004). Learning by doing and spillovers: Evidence from firm-level panel data. Review of Industrial Organization, 25(2), 175–203. https://doi.org/10.1023/B:REIO.0000042392.74043.08

Barwick, P. J., Kalouptsidi, M., & Zahur, N. B. (2019). China’s industrial policy: An empirical evaluation. NBER Working Paper No. 26075. https://doi.org/10.3386/w26075

Bau, N., & Matray, A. (2021). Misallocation and capital market integration: Evidence from India. NBER Working Paper No. 27955. https://doi.org/10.3386/w27955

Beason, R., & Weinstein, D. E. (1996). Growth, economies of scale, and targeting in Japan (1955–1990). Review of Economics and Statistics, 78(2), 286–295. https://doi.org/10.2307/2109930

Becker, S. O., Egger, P. H., & von Ehrlich, M. (2010). Going NUTS: The effect of EU structural funds on regional performance. Journal of Public Economics, 94(9–10), 578–590. https://doi.org/10.1016/j.jpubeco.2010.06.006

Blonigen, B. A., & Prusa, T. J. (2016). Dumping and antidumping duties. In K. Bagwell & R. W. Staiger (Eds.), Handbook of Commercial Policy (Vol. 1, pp. 107–159). North-Holland. https://doi.org/10.1016/bs.hescop.2016.04.002

Blonigen, B. A. (2016). Industrial policy and downstream export performance. The Economic Journal, 126(595), 1635–1659. https://doi.org/10.1111/ecoj.12270

Blundell, R., & Costa Dias, M. (2009). Alternative approaches to evaluation in empirical microeconomics. Journal of Human Resources, 44(3), 565–640. https://doi.org/10.3368/jhr.44.3.565

Callaway, B., & Sant’Anna, P. H. C. (2021). Difference-in-differences with multiple time periods. Journal of Econometrics, 225(2), 200–230. https://doi.org/10.1016/j.jeconom.2020.12.001

Castley, R. (1997). Korea’s economic miracle: The crucial role of Japan (1st ed.). London, UK: Palgrave Macmillan. https://doi.org/10.1057/9780230377147

Cerqua, A., & Pellegrini, G. (2017). Industrial policy evaluation in the presence of spillovers. Small Business Economics, 49(3), 671–686. https://doi.org/10.1007/s11187-017-9853-5

Chang, H.-J. (1993). The political economy of industrial policy in Korea. Cambridge Journal of Economics, 17(2), 131–157. https://doi.org/10.1093/oxfordjournals.cje.a035227

Cho, Y. J., & Kim, J.-K. (1995). Credit policies and the industrialization of Korea. Washington, DC: World Bank. https://doi.org/10.1596/0-8213-3246-5

Cho, Y. J., & Cole, D. C. (1986). The role of the financial sector in Korea’s structural adjustment. Development Discussion Paper No. 244. Harvard Institute for International Development.

Corden, W. M. (1997). Trade policy and economic welfare (2nd ed.). Oxford, UK: Oxford University Press. https://doi.org/10.1093/0198775342.001.0001

Costinot, A., Donaldson, D., & Komunjer, I. (2012). What goods do countries trade? A quantitative exploration of Ricardo’s ideas. Review of Economic Studies, 79(2), 581–608. https://doi.org/10.1093/restud/rdr033

Criscuolo, C., Martin, R., Overman, H., & Van Reenen, J. (2019). Some causal effects of an industrial policy. American Economic Review, 109(1), 48–85. https://doi.org/10.1257/aer.20160034

Cushman, J. H. (1979). The military balance in Korea. Asian Affairs: An American Review, 6(6), 359–369. https://doi.org/10.1080/00927678.1979.10553986

Dollar, D., & Sokoloff, K. (1990). Patterns of productivity growth in South Korean manufacturing industries, 1963–1979. Journal of Development Economics, 33(2), 309–327. https://doi.org/10.1016/0304-3878(90)90026-8

Eberstadt, N. (1999). The end of North Korea. Washington, DC: The AEI Press.

Evans, P. B. (1995). Embedded autonomy: States and industrial transformation. Princeton, NJ: Princeton University Press. https://doi.org/10.1515/9781400821723

Fernandes, A. M., & Isgut, A. E. (2005). Learning-by-doing, learning-by-exporting, and productivity: Evidence from Colombia. World Bank Policy Research Working Paper No. 3544. https://doi.org/10.1596/1813-9450-3544

Frank, C. R., Kim, K. S., & Westphal, L. E. (1975). Economic growth in South Korea since World War II. In Foreign trade regimes and economic development: South Korea (pp. 6–24). NBER. https://www.nber.org/system/files/chapters/c4063/c4063.pdf

Giorcelli, M. (2019). The long-term effects of management and technology transfers. American Economic Review, 109(1), 121–152. https://doi.org/10.1257/aer.20170619

Grossman, G. M. (1990). Promoting new industrial activities: A survey of recent arguments and evidence. OECD Economic Studies, 14, 87–125.

Gruber, H. (1998). Learning by doing and spillovers: Further evidence for the semiconductor industry. Review of Industrial Organization, 13(6), 697–711. https://doi.org/10.1023/A:1007758313864

Haggard, S. (1990). The politics of growth in the newly industrializing countries (1st ed.). Ithaca, NY: Cornell University Press.

Hamm, T.-Y. (1999). Arming the two Koreas: State, capital and military power (Vol. 10). London, UK: Routledge. https://doi.org/10.4324/9780203022719

Hanlon, W. W. (2020). The persistent effect of temporary input cost advantages in shipbuilding, 1850 to 1911. Journal of the European Economic Association, 18(6), 3173–3209. https://doi.org/10.1093/jeea/jvaa028

Harris, R., Keay, I., & Lewis, F. (2015). Protecting infant industries: Canadian manufacturing and the National Policy, 1870–1913. Explorations in Economic History, 56, 15–31. https://doi.org/10.1016/j.eeh.2014.11.002

Harrison, A., & Rodríguez-Clare, A. (2010). Trade, foreign investment, and industrial policy for developing countries. In D. Rodrik & M. Rosenzweig (Eds.), Handbook of Development Economics (Vol. 5, pp. 4039–4214). North-Holland. https://doi.org/10.1016/B978-0-444-52944-2.00001-X

Head, K. (1994). Infant industry protection in the steel rail industry. Journal of International Economics, 37(3–4), 141–165. https://doi.org/10.1016/0022-1996(94)90003-5

Heckman, J., Ichimura, H., Smith, J., & Todd, P. (1998). Characterizing selection bias using experimental data. Econometrica, 66(5), 1017–1098. https://doi.org/10.2307/2999630

Hirschman, A. O. (1958). The strategy of economic development (3rd ed.). New Haven, CT: Yale University Press.

Hong, W. (1977). Trade, distortions and employment growth in Korea. Seoul, South Korea: Korea Development Institute.

Hong, W. (1987). Export-oriented growth and trade patterns of Korea. In C. I. Bradford Jr. & W. H. Branson (Eds.), Trade and structural change in Pacific Asia (pp. 273–306). Chicago, IL: University of Chicago Press.

Horikane, Y. (2005). The political economy of heavy industrialisation: The heavy and chemical industry (HCI) push in South Korea in the 1970s. Modern Asian Studies, 39(2), 369–397. https://doi.org/10.1017/S0026749X0400160X

Inwood, K., & Keay, I. (2013). Trade policy and industrial development: Iron and steel in a small open economy, 1870–1913. Canadian Journal of Economics, 46(4), 1265–1294. https://doi.org/10.1111/caje.12053

Irwin, D. A. (1991). Retrospectives: Challenges to free trade. Journal of Economic Perspectives, 5(2), 201–208. https://doi.org/10.1257/jep.5.2.201

Javorcik, B. S. (2004). Does foreign direct investment increase the productivity of domestic firms? In search of spillovers through backward linkages. American Economic Review, 94(3), 605–627. https://doi.org/10.1257/0002828041464605

Jaworski, T., & Smyth, A. (2018). Shakeout in the early commercial airframe industry. The Economic History Review, 71(2), 617–638. https://doi.org/10.1111/ehr.12525

Johnson, C. (1982). MITI and the Japanese miracle: The growth of industrial policy, 1925–1975. Stanford, CA: Stanford University Press. https://doi.org/10.1515/9780804765602

Juhász, R. (2018). Temporary protection and technology adoption: Evidence from the Napoleonic blockade. American Economic Review, 108(11), 3339–3376. https://doi.org/10.1257/aer.20160168

Juhász, R., & Lane, N. (2024). The political economy of industrial policy. [Forthcoming Publication]. https://doi.org/10/gtwghr

Juhász, R., Lane, N., Oehlsen, E., & Pérez, V. (2022). The who, what, when, and how of industrial policy: A text-based approach. OSF Preprints. https://doi.org/10.31235/osf.io/uyxh9

Juhász, R., Lane, N., & Rodrik, D. (2024). The new economics of industrial policy. Annual Review of Economics, 16, [Page numbers pending]. https://doi.org/10.1146/annurev-economics-081023-024638

Kalouptsidi, M. (2018). Detection and impact of industrial subsidies: The case of Chinese shipbuilding. Review of Economic Studies, 85(2), 1111–1158. https://doi.org/10.1093/restud/rdx059

Kim, B.-K. (2011a). The leviathan: Economic bureaucracy under Park. In B.-K. Kim & E. F. Vogel (Eds.), The Park Chung Hee era: The transformation of South Korea (pp. 200–232). Cambridge, MA: Harvard University Press.

Kim, C.-Y. (2011b). From despair to hope: Economic policymaking in Korea, 1945–1979. Seoul, South Korea: Korea Development Institute.

Kim, E. M. (1997). Big business, strong state: Collusion and conflict in South Korean development, 1960–1990. Albany, NY: State University of New York Press. https://doi.org/10.2307/2655211

Kim, H.-A. (2011c). Heavy and chemical industrialization, 1973–1979: South Korea’s homeland security measures. In Reassessing the Park Chung Hee era, 1961–1979: Development, political thought, democracy, & cultural influence.

Kim, J. H. (1990). Korean industrial policy in the 1970s: The heavy and chemical industry drive. Seoul, South Korea: Korea Development Institute.

Kim, K., & Leipziger, D. M. (1993). Korea: A case of government-led development. In The lessons of East Asia (pp. 155–197). Washington, DC: World Bank Publications.

Kim, S. J. (1970). South Korea’s involvement in Vietnam and its economic and political impact. Asian Survey, 10(6), 519–532. https://doi.org/10.2307/2642884

Kong, T. Y. (2000). The politics of economic reform in South Korea: A fragile miracle. London, UK: Routledge. https://doi.org/10.4324/9781315004938

Koo, B.-Y. (1984). The role of the government in Korea’s industrial development. Seoul, South Korea.

Krueger, A. O. (1979). The developmental role of the foreign sector and aid. Cambridge, MA: Harvard University Press. https://doi.org/10.1353/book75556

Krueger, A. O. (1990). Government failures in development. Journal of Economic Perspectives, 4(3), 9–23. https://doi.org/10.1257/jep.4.3.9

Krueger, A. O. (1995). East Asian experience and endogenous growth theory. In Growth theories in light of the East Asian experience (pp. 9–36). Chicago, IL: University of Chicago Press.

Krueger, A. O., & Tuncer, B. (1982). An empirical test of the infant industry argument. American Economic Review, 72(5), 1142–1152.

Krugman, P. R. (1993). The current case for industrial policy. In D. Salvatore (Ed.), Protectionism and world welfare (pp. 160–179). Cambridge, UK: Cambridge University Press. https://doi.org/10.1017/CBO9780511521997.008

Kwack, T. (1984). Industrial restructuring experience and policies in Korea in the 1970s. Seoul, South Korea: Korea Development Institute.

Kwack, T. (1985). Depreciation and taxation of income from capital. Seoul, South Korea: Korea Development Institute.

Kwack, T., & Lee, K.-S. (1992). Tax reform in Korea. In T. Ito & A. O. Krueger (Eds.), The political economy of tax reform (pp. 117–136). Chicago, IL: University of Chicago Press.

Kwak, T. Y. (2003). The Nixon Doctrine and the Yusin reforms: American foreign policy, the Vietnam War, and the rise of authoritarianism in Korea, 1968–1973. Journal of American-East Asian Relations, 12(1–2), 33–54. https://doi.org/10.1163/187656103793645315

Kwang-Mo, K. (2015). The spirit of Park Chung-Hee lives on in the heavy and chemical industry: A record of history. Seoul, South Korea: Giparang. ISBN: 9788965238720

Lall, S. (1997). Selective policies for export promotion: Lessons from Asian tigers. Research for Action No. 43. Helsinki: UNU World Institute for Development Economics Research.

Lane, N. (2020). The new empirics of industrial policy. Journal of Industry, Competition and Trade, 20(2), 209–234. https://doi.org/10.1007/s10842-019-00323-2

Lee, J.-W. (1996). Government interventions and productivity growth. Journal of Economic Growth, 1(3), 391–414. https://doi.org/10.1007/BF00141045

Lee, S.-C. (1991). The heavy and chemical industries promotion plan (1973–1979). In L.-J. Cho & Y. H. Kim (Eds.), Economic development in the Republic of Korea: A policy perspective (pp. 431–471). Honolulu, HI: East-West Center, University of Hawaii Press.

Levinsohn, J., & Petrin, A. (2003). Estimating production functions using inputs to control for unobservables. Review of Economic Studies, 70(2), 317–341. https://doi.org/10.1111/1467-937X.00246

Lim, Y. (1981). Government policy and private enterprise: Korean experience in industrialization (1st ed.). Berkeley, CA: Center for Korean Studies, Institute of East Asian Studies, University of California.

Lin, J. Y. (2012). New structural economics: A framework for rethinking development and policy. Washington, DC: World Bank. https://doi.org/10.1596/978-0-8213-8955-3

Liu, E. (2019). Industrial policies in production networks. Quarterly Journal of Economics, 134(4), 1883–1948. https://doi.org/10.1093/qje/qjz024

Lucas, R. E. B. (1984). An empirical test of the infant industry argument: Comment. American Economic Review, 74(5), 1110–1111.

Luedde-Neurath, R. (1988). State intervention and export-oriented development in South Korea. In G. White (Ed.), Developmental states in East Asia (pp. 68–112). London, UK: Palgrave Macmillan. https://doi.org/10.1007/978-1-349-19195-6_3

Manova, K., Wei, S.-J., & Zhang, Z. (2015). Firm exports and multinational activity under credit constraints. Review of Economics and Statistics, 97(3), 574–588. https://doi.org/10.1162/REST_a_00469

Martin, L. A., Nataraj, S., & Harrison, A. E. (2017). In with the big, out with the small: Removing small-scale reservations in India. American Economic Review, 107(2), 354–386. https://doi.org/10.1257/aer.20141335

Mitrunen, M. (2019). War reparations, structural change, and intergenerational mobility. [Working Paper].

Moon, C.-I., & Jun, B.-J. (2011). Modernization strategy: Ideas and influences. In B.-K. Kim & E. F. Vogel (Eds.), The Park Chung Hee era: The transformation of South Korea (pp. 115–139). Cambridge, MA: Harvard University Press.

Moon, C.-I., & Lee, S. (2009). Military spending and the arms race on the Korean Peninsula. Asian Perspective, 33(4), 69–99. https://doi.org/10.1353/apr.2009.0003

Nam, C.-H. (1980). Trade and industrial policies, and the structure of protection in Korea. Seoul, South Korea: Korea Development Institute.

Nam, S.-W. (1992). Korea’s financial reform since the early 1980s. In G. Caprio, I. Atiyas, & J. A. Hanson (Eds.), Financial reform: Theory and experience (pp. 184–222). New York, NY: Cambridge University Press. https://doi.org/10.1017/CBO9780511571879.010

Nelson, R. R., & Pack, H. (1999). The Asian miracle and modern growth theory. The Economic Journal, 109(457), 416–436. https://doi.org/10.1111/1468-0297.00456

Nixon, R. M. (1970). Letter from President Nixon to Korean President Park. In E. C. Keefer & C. Yee (Eds.), Foreign relations of the United States, 1969–1976 (Vol. XIX, pp. 152–154). Washington, DC: United States Government Printing Office.

Noland, M. (2004). Selective intervention and growth: The case of Korea. In M. G. Plummer (Ed.), Empirical methods in international trade: Essays in honor of Mordechai Kreinin (pp. 229–246). Cheltenham, UK: Edward Elgar. https://doi.org/10.4337/9781845421661.00022

Noland, M., & Pack, H. (2003). Industrial policy in an era of globalization: Lessons from Asia. Washington, DC: Institute for International Economics.

Nunn, N., & Trefler, D. (2010). The structure of tariffs and long-term growth. American Economic Journal: Macroeconomics, 2(4), 158–194. https://doi.org/10.1257/mac.2.4.158

Nurkse, R. (1953). Problems of capital formation in underdeveloped countries. Oxford, UK: Oxford University Press.

Olden, A., & Møen, J. (2022). The triple difference estimator. The Econometrics Journal, 25(1), 1–22. https://doi.org/10.1093/ectj/utac010

Olley, G. S., & Pakes, A. (1996). The dynamics of productivity in the telecommunications equipment industry. Econometrica, 64(6), 1263–1297. https://doi.org/10.2307/2171831

Pack, H. (2000). Industrial policy: Growth elixir or poison? World Bank Research Observer, 15(1), 47–67. https://doi.org/10.1093/wbro/15.1.47

Pack, H., & Saggi, K. (2006). Is there a case for industrial policy? A critical survey. World Bank Research Observer, 21(2), 267–297. https://doi.org/10.1093/wbro/lkl001

Park, T.-H. (1977). A study on the industry tariff system of Korea—with reference to heavy & chemical industry development. KDI Working Paper, 4, 173–214.

Perkins, D. H. (2013). East Asian development: Foundations and strategies (The Edwin O. Reischauer Lectures). Cambridge, MA: Harvard University Press.

Pons-Benaiges, O. (2017). Did government intervention target technological externalities? Industrial policy and economic growth in postwar Japan, 1964–1983. [Working Paper].

Rasmussen, P. N. (1956). Studies in inter-sectoral relations (1st ed.). Copenhagen, Denmark: E. Harck.

Redding, S. (1999). Dynamic comparative advantage and the welfare effects of trade. Oxford Economic Papers, 51(1), 15–39. https://doi.org/10.1093/oep/51.1.15

Rhyu, S.-Y., & Lew, S.-J. (2011). Pohang Iron & Steel Company. In B.-K. Kim & E. F. Vogel (Eds.), The Park Chung Hee era (pp. 322–344). Cambridge, MA: Harvard University Press.

Robinson, J. A. (2010). Industrial policy and development: A political economy perspective. In J. Y. Lin & B. Pleskovic (Eds.), Annual World Bank Conference on Development Economics 2010—Global: Lessons from East Asia and the global financial crisis (pp. 61–79). Washington, DC: World Bank.

Rodrik, D. (2004). Industrial policy for the twenty-first century. CEPR Discussion Paper No. 4767. https://doi.org/10.2139/ssrn.617544

Rodrik, D. (2005). Growth strategies. In P. Aghion & S. N. Durlauf (Eds.), Handbook of economic growth (Vol. 1A, pp. 967–1014). Amsterdam, Netherlands: Elsevier. https://doi.org/10.1016/S1574-0684(05)01014-2

Rodrik, D., Grossman, G., & Norman, V. (1995). Getting interventions right: How South Korea and Taiwan grew rich. Economic Policy, 10(20), 53–107. https://doi.org/10.2307/1344538

Rosenstein-Rodan, P. N. (1943). Problems of industrialisation of Eastern and South-Eastern Europe. The Economic Journal, 53(210/211), 202–211. https://doi.org/10.2307/2226317

Rotemberg, M. (2019). Equilibrium effects of firm subsidies. American Economic Review, 109(10), 3475–3513. https://doi.org/10.1257/aer.20171840

Sant’Anna, P. H. C., & Zhao, J. (2020). Doubly robust difference-in-differences estimators. Journal of Econometrics, 219(1), 101–122. https://doi.org/10.1016/j.jeconom.2020.06.003

Scitovsky, T. (1954). Two concepts of external economies. Journal of Political Economy, 62(2), 143–151. https://doi.org/10.1086/257498

Silva, J. M. C. S., & Tenreyro, S. (2006). The log of gravity. Review of Economics and Statistics, 88(4), 641–658. https://doi.org/10.1162/rest.88.4.641

Smith, J., & Todd, P. E. (2005). Does matching overcome LaLonde’s critique of nonexperimental estimators? Journal of Econometrics, 125(1–2), 305–353. https://doi.org/10.1016/j.jeconom.2004.04.011

Stern, J. J., Kim, J.-H., Perkins, D. H., & Yoo, J.-H. (1995). Industrialization and the state: The Korean heavy and chemical industry drive. Cambridge, MA: Harvard Institute for International Development.

Succar, P. (1987). The need for industrial policy in LDC’s—A restatement of the infant industry argument. International Economic Review, 28(2), 521–534. https://doi.org/10.2307/2526741

Wade, R. H. (1990). Governing the market: Economic theory and the role of government in East Asian industrialization (2nd ed.). Princeton, NJ: Princeton University Press. https://doi.org/10.1515/9780691187181

Weinstein, D. E. (1995). Evaluating administrative guidance and cartels in Japan (1957–1988). Journal of the Japanese and International Economies, 9(2), 200–223. https://doi.org/10.1006/jjie.1995.1011

Westphal, L. E. (1990). Industrial policy in an export-propelled economy: Lessons from South Korea’s experience. Journal of Economic Perspectives, 4(3), 41–59. https://doi.org/10.1257/jep.4.3.41

Westphal, L. E., & Kim, K. S. (1982). Fostering technological mastery by means of selective infant industry protection. In B. Balassa (Ed.), Development strategies in semi-industrial economies (pp. 212–279). Baltimore, MD: Johns Hopkins University Press.

Woo, J.-E. (1991). Race to the swift: State and finance in Korean industrialization. New York, NY: Columbia University Press.

Woo-Cumings, M. J.-E. (1998). National security and the rise of the developmental state in South Korea and Taiwan. In H. Rowen (Ed.), Behind East Asian growth: The political and social foundations of prosperity (pp. 319–337). London, UK: Routledge.

Wooldridge, J. M. (2009). On estimating firm-level production functions using proxy variables to control for unobservables. Economics Letters, 104(3), 112–114. https://doi.org/10.1016/j.econlet.2009.04.026

World Bank. (1987). Korea: Managing the industrial transition—the conduct of industrial policy. Washington, DC: World Bank.

World Bank. (1993). The East Asian miracle: Economic growth and public policy. New York, NY: Oxford University Press.

Yoo, J.-H. (1990). The industrial policy of the 1970s and the evolution of the manufacturing sector in Korea. Seoul, South Korea: Korea Development Institute.

Young, A. (1991). Learning by doing and the dynamic effects of international trade. Quarterly Journal of Economics, 106(2), 369–405. https://doi.org/10.2307/2937942